Dear Friend,
The global economy is flexing its muscles with the U.S. leading the charge, but don’t break out the champagne yet—tariffs and rising debt are like uninvited guests at the recovery party.
Meanwhile, Costco is proving inflation doesn’t stand a chance against $1.50 hot dogs and bulk chicken stock, posting jaw-dropping growth that’ll make you rethink your grocery list.
Retirees, there’s a small twist to the 4} rule—it’s now the 3.7% rule, because apparently even your retirement portfolio has to tighten its belt.
Oh, and in case you missed it, Trump’s victory has crypto going to the moon—literally, if Gemini’s new ads are any clue.
Keep reading this edition of the Insider Report for all the details.
Jeremy Blossom
Editor in Chief, Everlasting Wealth
MARKET HEADLINES
📊 Broadcom’s stock surged by over 17% in premarket trading after the company announced a quarterly dividend increase and reported a massive 220% annual growth in its AI chip business, which brought in over $12 billion in revenue by supplying advanced chips to major tech firms like Alphabet and Meta.
❄️ Natural gas prices hit their highest level in over a year, closing at $3.455 per million British thermal units, as freezing weather drove up demand and caused a larger-than-expected drawdown in U.S. gas stockpiles, reversing the earlier oversupply-induced slump in prices this year.
📉 Texas Pacific Land, a top-performing stock in 2024 and a major landowner in the oil-rich Permian Basin, has fallen 25% in its steepest decline since 2020 after joining the S&P 500, despite its diversified revenue sources from oil royalties, renewable energy projects, and innovative ventures like bitcoin mining.
🔬 Alphabet’s stock climbed nearly 12% this week after unveiling Willow, a quantum computing chip designed to enable complex calculations for breakthroughs in fields like drug discovery and weather prediction, though analysts caution that practical applications remain years away, making the $253 billion increase in market value highly speculative.
🚢 U.S. manufacturers are rushing to stockpile critical imports, including auto parts and electronics, ahead of potential tariffs under President-elect Trump, with procurement activity reaching its highest level in over a year as companies brace for supply chain disruptions and rising costs.
Trump’s Win Sparks Crypto Revival and Marketing Boom
With Donald Trump back in office and bitcoin soaring past $100,000, cryptocurrency companies are seizing the moment to re-energize their marketing.
Exchanges like Gemini and Kraken are rolling out bold campaigns, from space-themed ads to contests predicting bitcoin prices, all aimed at capturing the renewed optimism in the sector.
Trump’s election has been a game-changer, fueling hopes for clearer regulations and energizing crypto’s place in the national conversation.
Firms like Coinbase are targeting everyday users, showcasing how crypto can help small business owners and families, while Crypto.com is betting on sports sponsorships to stay visible.
Though crypto’s past struggles with collapses like FTX and regulatory crackdowns linger, the current buzz signals a comeback fueled by Trump-era policies.
It’s a moment of high stakes and even higher ambitions for the industry.
STOCKS TO WATCH
↗️ Broadcom: Shares surged 14% in premarket trading after the chip and software company boosted its quarterly dividend and posted a significant revenue increase.
↗️ RH: The luxury furniture retailer saw its shares soar premarket, driven by a swing to a quarterly profit and strong fourth-quarter revenue guidance projecting 18%-20% growth.
↗️ Costco Wholesale: The warehouse giant reported higher quarterly sales, noting a shift in customer spending patterns as inflation eases. Shares edged higher premarket.
🔎 Boeing: The aerospace company announced a $1 billion investment in its South Carolina facilities to accelerate 787 Dreamliner production and address backlog issues, nudging shares up 0.6% premarket.
↘️ Warner Bros. Discovery: Shares dropped over 2% in premarket trading, reversing part of Thursday’s 15% gain, which was fueled by news of a company restructuring into two divisions.
This Day in the Markets
📉 On this day in 1989, the Dow Jones Industrial Average suffered a steep drop of 6.91%, marking what became known as the “Friday the 13th mini-crash.” The sell-off was triggered by the collapse of a proposed $6.75 billion leveraged buyout of United Airlines’ parent company, UAL Corporation, raising fears about the health of corporate debt markets. Investors panicked, selling off stocks across sectors, which sent shockwaves through global financial markets.
STOCK PICK OF THE WEEK
Brownstone Research
From $1,000 to $222K… and counting 📈
In February 2016, when almost nobody was talking about artificial intelligence…
Jeff Brown picked Nvidia as one of his favorite stocks.
Today, it’s probably the most popular stock in the world.
Shares have jumped by more than 22,000%… enough to turn $1,000 into more than $222,000.
But if you missed out on Nvidia, Jeff have good news.
He believe this Elon Musk “silent partner” could be the next big AI winner.
This company is supplying Elon with a key piece of tech for a project he believes will be worth $9 trillion.
That’s nearly 10 times more money than the market caps of Tesla… SpaceX… PayPal… Neuralink… and X… COMBINED.
So please click here to see the details because a lot of people could get rich.
ECONOMY
U.S. Strength Fuels Global Growth, but Tariffs and Debt Cloud Outlook
The OECD forecasts global growth to rise slightly to 3.3% in 2025, with the U.S. economy leading the way at a robust 2.4%, thanks to policies aimed at boosting domestic industries.
President-elect Trump’s plans for higher tariffs could help rebalance trade but might also strain global growth and increase consumer prices, according to the report.
Rising budget deficits in the U.S. and France are flagged as risks, though markets remain hopeful for fiscal discipline under Trump’s administration.
India shines as a global standout, while Europe, particularly Germany, struggles with structural challenges like weak digital infrastructure.
Central banks are expected to carefully cut interest rates as inflation cools, adding another layer of complexity to the recovery.
The global economy shows promise, but sustaining momentum will depend on balancing reforms with fiscal and trade stability.
ECONOMY HEADLINES
💵 Rising inflation, with the consumer price index increasing to 2.7% in November, poses a dual challenge for President-elect Trump and the Federal Reserve, complicating efforts to stabilize prices and prompting concerns about the pace of future rate cuts amid sticky core inflation at 3.3%.
📉 Investors may need to temper expectations for Federal Reserve rate cuts in 2025, as inflation remains stubbornly above target, economic momentum stays strong, and Trump’s policies on tariffs, taxes, and immigration could further fuel price pressures.
🛍️ While President-elect Trump has vowed to tame inflation, his proposed tariffs and immigration restrictions could counteract these efforts, with economists warning that policies meant to lower costs might instead drive up prices for goods, services, and labor.
📊 The Nasdaq outperformed markets as Broadcom surged 15% on strong AI chip sales, while Chinese stocks faltered after lackluster stimulus signals from Beijing, leaving investors eyeing next week’s Federal Reserve rate decision for further direction.
🛒 Dollar stores signal financial strain among low-income consumers, as budget-conscious shoppers delay purchases, opt for cheaper brands, and grapple with inflation that disproportionately impacts essentials like food, rent, and utilities.
BUSINESS
Costco Proves Inflation Can’t Stop a Good Deal
Costco just keeps winning, posting a 7.5% jump in net sales and adding nearly 10 million new members, even after hiking membership fees.
With 92.8% of U.S. and Canadian members renewing, it’s clear folks aren’t giving up their bulk buys anytime soon.
Traffic growth was the big driver, helped by lower gas prices and price cuts on staples like chicken stock.
Sure, tariffs could shake things up, but Costco’s CFO shrugged it off, saying they’ve got plenty of tricks to keep costs in check.
When it comes to inflation, Costco proves that great deals and free samples are recession-proof.
RETIREMENT
Goodbye 4%, Hello 3.7%: Morningstar Updates Retirement Rule
Morningstar just trimmed the “4% rule” for retirement spending down to 3.7%, thanks to higher stock prices and skimpy bond yields.
For retirees, that means tightening the belt a little—like spending $37,000 in 2025 from a $1 million portfolio instead of the old $40,000 benchmark.
This adjustment aims to stretch savings across 30 years, even with inflation nudging up those yearly withdrawals.
While it’s a cautious move based on lower expected investment returns, it’s still designed to keep retirees from running out of cash in 90% of scenarios.
So, fewer splurges, but hey, you’ll still have money for groceries and the occasional golf game.
The good news? You’ll get a 3% “raise” next year if inflation holds steady—small wins, right?
Trivia
Which factor contributed to the United States becoming the world’s leading oil producer by the 1920s?
A. Discovery of oil in Alaska
B. Advances in drilling technology
C. Discoveries in Texas, California, and Oklahoma
D. Government subsidies for oil companies
E. Reduced reliance on coal
Scroll for the answer
TAXES
Tax-Smart Giving Strategies for Seniors
Seniors aged 70½ and older have unique tax-saving opportunities when donating to charity, especially through Qualified Charitable Distributions (QCDs) and Donor-Advised Funds (DAFs).
QCDs allow retirees to donate directly from IRAs, avoiding taxes on withdrawals and reducing taxable income, which can lower Medicare surcharges and other taxes.
DAFs, open to donors of any age, let funds grow tax-free while offering flexibility for future giving and capital-gains tax savings on appreciated assets.
While QCDs are typically more tax-efficient for gifts under $105,000, DAFs excel for larger donations or those with taxable investments.
For savvy givers, combining these strategies can maximize benefits and simplify charitable contributions.
Which factor contributed to the United States becoming the world’s leading oil producer by the 1920s?
C. Discoveries in Texas, California, and Oklahoma
By the 1920s, the United States had established itself as the world’s leading oil producer due to significant oil discoveries in states like Texas, California, and Oklahoma.
These regions became central to the oil industry, with abundant reserves driving rapid production.
This energy boom fueled industrialization and made petroleum a key U.S. export, contributing to economic growth and global influence. While advancements in drilling technology played a role, the primary driver was the discovery of vast oil fields in these states.
